It is unknown what Taylor Swift will think about the Argentine public, known for its boundless passion, after her first concert in Buenos Aires this Thursday. From the Rolling Stones to Iron Maiden, major musical groups have always been captivated by the enthusiasm and enthusiasm of their South American listeners. What is certain is that the pop star, who according to Bloomberg is worth more than $1 billion, is shaking up the local economy just two weeks before the second round of the presidential election.
The phenomenon is not new and has already been repeated in other American countries such as the United States and Mexico. According to Bloomberg Economics, the 53 concerts in the United States increased local GDP by at least $4.3 billion. Even the Federal Reserve itself emphasizes that the pop star’s concerts have increased tourism revenue in places like Philadelphia. In the case of Mexico, where the singer gathered 180,000 visitors, the economic impact was $61.5 million in just four nights, according to the local trade association.
However, the case of Argentina is different. The land of tango is the only one of the 20 countries Swift will visit during her Eras tour, which ends in November next year, that is in recession, according to the International Monetary Fund. The international organization predicts the local economy will shrink by 2.5% this year, red figures it shares only with Germany and Sweden, whose declines are limited to just 0.5% and 0.7%.
Other indicators like inflation are even more worrying: BBVA Research estimated in October that prices will rise 200% year-on-year by the end of 2023. The inflationary spiral hides behind large macroeconomic imbalances with a historic budget deficit, accelerated issuance of monetary and foreign debt, subject to constant renegotiation. The Spanish bank’s latest update revises its budget deficit estimate to 2.8% of GDP, while direct and indirect money issuance to support the Treasury will exceed 4% of GDP this year.
The good news? No one is suggesting that the 34-year-old singer is responsible for worsening inflation in recent months. Unlike the Swedish economy, where the visits of another music diva, Beyoncé, in May this year may have led to a 9.7% increase in the inflation rate compared to last year, Taylor Swift’s visit merely leaves a new injection of currency. Pop’. Rather, Argentine users used social networks to joke about it. “Taylor Swift came to revive the Argentine economy,” mentions a user on X, the old Twitter, alluding to the devaluation brake in the unofficial market in recent weeks.
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An economic breathing space
Another sign of the economic times Argentina is going through are the at least ten types of changes that are taking place in the country. They were a golden opportunity for the 250,000 spectators who will attend the three concerts planned at the River Plate stadium.
Middle-class Argentines have become accustomed to seeing shows sell out despite the economic crisis, due to the fluctuating price of the parallel dollar that marks local savings, the sale of tickets in installments and the permanent devaluation of the local currency. “Savings are never enough for something big, like buying a house. We can only spend the money on a small fun activity,” says Victoria Leo Murias, a thirty-year-old doctor who spends her weekends between restaurants and concerts. Although he did not buy his tickets to see Taylor Swift, the fever that the country is experiencing with the North American singer is high
They are joined by a large number of foreigners who benefit from the unusual local prices: the most expensive ticket in Buenos Aires cost only 144 euros. In comparison: To see the artist in Madrid, fans spent up to 589 euros for access to the Santiago Bernabéu in May next year. This has led to a flood of visits from neighboring countries, particularly Chile, where Swift will not be making a stopover.
The problem for experts is that the context of an economy in free fall, with prices fluctuating more than 10% since 2010, makes it impossible to estimate the real impact of the pop diva’s visit. “Every number is an invention, the context, the uncertainty and basically the informality make any comment impossible,” an economist from an international consulting firm cautiously points out to this newspaper.
The “B-side” of the economy, that is, everything that falls outside the radar of the local tax authority, affects the services surrounding the American artist, so all data is not strict. Something similar happens with temporary rentals: there are 20,000 apartments for rent on Airbnb alone in Buenos Aires. However, in the northern part of the Argentine capital, near where Swift will perform until next Saturday the 11th, options are few and prices top 200 euros a night, up to twelve times more than that Average. Various real estate agencies surveyed confirm this situation: “The city will be impossible this week,” says one of those responsible.
The hotels, for their part, emphasize that demand is above average. “The hotels in Buenos Aires are at full capacity,” confirmed the Argentine Tourism Hotel Association in statements to the Perfil newspaper. The employers’ association highlights the advantage of the Argentine capital, where accommodation costs less than a third of the normal price for other major cities that the singer will visit.
The Swiftie passion, as the singer’s fans call themselves, can be felt in less glamorous areas of Buenos Aires. This is the case in the Once district, a discreet commercial area of the capital full of jewelry stores. “The stores are full of fans looking for materials to make their friendship bracelets,” explains Julieta Scattini, a local journalist and economist who also describes herself as a fan. These friendship bracelets became a symbol among fans, dating back to a 2022 song by the singer. Even Netflix changed one of its signs in Buenos Aires to highlight the phenomenon.
In addition, there are all kinds of controversies, for example over the show’s official souvenirs, which include, among other things, various models of T-shirts, sweatshirts and bags. The high prices, which ranged from 15 euros for a print to 60 euros for a jersey, also encouraged an alternative industry. “All entrepreneurs, including classic clothing stores, have launched their own Taylor Swift-inspired collections, no one wants to be left out,” says Scattini.
The political time
Those who were clearly not left out of the discussion were the political leaders, especially two weeks before the second round of elections. Youth votes could be decisive in the second round of elections between the ultra-liberal Javier Milei and the Peronist Sergio Massa.
Although the two candidates have avoided directly mentioning the phenomenon, their fans have taken advantage of the media hype. The singer’s group of Argentine fans have issued a statement opposing the ultra-liberal candidate. “Milei is Trump,” says the fan club, demanding not to vote for this candidate after “hearing and seeing how Taylor gives everything to prevent the right from winning in her country.”
Although outside the campaign, the current head of government of Buenos Aires, the conservative Horacio Rodríguez Larreta, tried to use the strength of the fans in the internal affairs of his group. In June, she announced that she was “a Swiftie” and suggested her followers create a playlist of the singer’s favorite songs on Spotify.
The good news is that there’s plenty of entertainment to be had once Swift leaves the Argentine stage on Saturday the 11th. The last mandatory debate will take place on Sunday, with economic issues taking center stage. While a devaluation is almost announced, the Peronist candidate is trying to defend the party founded in the last three months, which is based on aid and the suspension of certain taxes such as the VAT on food and the income tax for the majority of the local population. On the other hand, Milei must explain why he is now deviating from the dollarization proposal and what alternative he offers the country. It will be up to both of them to create a growth context that encourages a revisit by the current Queen of Pop.
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